Logistics players hope that Goods & Services Tax (GST) regime will ease inter-State movement, and ensure more online processes. Container train operators have sought a five per cent rate under the GST for all rail-related containerised movement services, an issue that has been agreed upon by the Railway Ministry, and suggested to the GST Council.

“With an aim to increase the share of rail services, a move that will also be environment friendly, ACTO has sought a five per cent slab for container movement and all allied services —large chunk of loading, unloading, packing, repacking, use of reach-stackers, among others,” Kamlesh Gupta, President, Association of Container Train Operators, told BusinessLine .

Shashi Kiran Shetty, Chairman, Allcargo Logistics, wondered about the number of registrations and number of return filings that the logistics companies have to do in the Centre and States. He also hoped that most of the interactions between industry and government will be online with minimal human interventions.

In the road transportation space, firms see reduction in inter-State movement. The Road Transport Ministry, which had made a strong case for removal of check posts in the GST Council meeting, is in the process of forming a committee to ensure the same, as advised by the GST Council.

Raghav Himatsingka, CEO and Founder, Truckola, said, “Currently every State has its own taxation system. Every time a truck passes through a State border it involves heavy taxation and paper work. Warehouse location is kept in accordance with the State taxation and amount of business from a particular area.”

He added that GST will be one without any tax boundaries. While the logistics industry is going to have an instant boost, the advent of the GST Bill will also work in favour of manufacturers as they no longer would have to worry about the cumbersome processes and overheads related to cargo and transportation.

Re-location business is always pan-India or global. Multiple States mean multiple tax structure which has been a great pain for the transportation industry, said Interem Relocations’ CEO Rahul Pillai. “Our sector is eagerly waiting for GST to become a reality. GST will not only bring a transparent method of doing business, but will also help in the overall growth of the sector,” he said.

Meanwhile, SP Singh, Senior Fellow, IFTRT, felt that many stakeholders are nervous about the date of implementation and have started making louder noises about implementation from October 1. He also added that many firms have started increasing prices in advance.

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